Wendy's franchisee files for Chapter 11 bankruptcy protection as burger chain struggles
One of Wendy's biggest U.S. franchisees, Meritage Hospitality Group, filed for Chapter 11 bankruptcy protection.
TL;DR
- Meritage Hospitality, a large Wendy's franchisee, filed for Chapter 11 bankruptcy.
- The filing is attributed to system-wide pressures affecting the burger chain, including declining same-store sales and a muddled turnaround strategy.
- Meritage CEO noted a 48% drop in store-level earnings due to rising beef costs and increased discounts.
- The company plans to keep its 314 Wendy's restaurants and other locations open during the restructuring.
- Wendy's franchise business, Quality Is Our Recipe LLC, is listed as the top unsecured creditor with a $24.9 million claim.